Is the Multi-HMO System a Promising Candidate for the National Health Insurance Reform in Taiwan?

Lung-Sheng Lee

The tentative direction of the reform of the national health insurance program in Taiwan is to transform the current fee-for-service system into a managed competition setting. The main goal of this reform is to contain costs without scarifying the quality of health care. All the citizens of Taiwan will be required to pay their premium to the National Health Insurance Foundation and choose their health insurance carrier from several health maintenance organizations (HMOs). HMOs are paid by risk-adjusted capitation. Based on the U.S. experiences and from perspective of Taiwan, the author draws the following conclusion. Even though managed competition among HMOs under a single payer may help to improve efficiency, reduce costs, and maintain quality of health care, appropriate government regulation and intervention are still the keys to ensure the success of the national health insurance reform in Taiwan.

Go to article